OK you should understand that what happened here is that the OS has stopped working since it has a problem, the first thing it does is look for a debugger to pass the control to (since this is not a Mac OS X developer station it will not find one), next thing it will do is dump to the screen all the data it can on the incident so you or a qualified technician can understand what the problem is.

the first part (blue part) display data of the CPU registers, program control exception state for CPU number 0 (this is your first CPU) at the time of crash, this data is hex address in the memory, it will not do you much good unless you are a mega advanced user.

next part Backtrace (green part) also uses hex memory address to point the command the CPU ran before crashing, again will not do us any good.

next part (bolded black) is still regarding backtrace (what happened before the crash), but it tells us what modules (usually kext) where loaded, usually this part can tell us allot, since this loading sequence ended with crashing the OS. in this section we see the last loaded module (in this example the GeForce) and the modules it depends on that needed to be loaded before it so they probably did not cause the crash since they are already loaded (although still possible that they are the fault - but rarely they are).

next part (Red part) is the exception chain, again stating the data as hex memory address and the CPU registers, will not help us.

last interesting part is the kernel version part (orange part) this part will state what kernel you are using, name version build date and platform in this example:

Darwin

8.11.0

oct 10

PPC (Power PC)

the rest is the same data from the caller point of view but you might find different data there (i never had).

1. first option is a random memory access error, meaning that the memory has been accessed to an area that wasn't expected or allowed, maybe even an application has written into memory that it shouldn't have (that was not its space) and by that caused the OS/kernel to crash, you should check what recent applications/utilities/kext/bundle/plugin/login items you have installed and remove it or disable its launch for a while until you can sort it out.

2. second option is usually the case for real macs but also possible for PC, as simple as a hardware problem, or bad memory card that causing the problem, maybe it act badly only if it is cold (immediately after booting the machine) or when it is hot (after several hours of work, depends sometimes minutes is enough on a sunny day), another hardware problem can be any hardware that access memory asynchronously, like IO (bluetooth card, modem, wifi, network card, etc.).

3. another option is that your combination of kext and bundles is not working (maybe versions of them some are older then should be?) so for such a case i always keep a bootable/loadable System/Library/Extensions folder on the disk.

4. this option is rarely the case, but can happen, if the main boot partition doesn't have enough free space it could cause the problem, so all you need to do in this case is to boot in safe mode and free some space.

5. another simple option is the case of a kext/application/kernel trying to access a file that it doesn't have a permission to access to, this can be caused due to wrong unix file mod, in this case boot into single user and fix permissions.

6. last option (that i can think of) is a bad kernel, so since the kernel itself is badly behaving that is why there are no kext loaded yet, since the kernel hasn't finished loading the core. this is why i keep a spare bootable/loadable copy on the disk so i can boot from it on a rainy kernel problem day.

so here are some articles like 10 things to do in order to get rid of the Panic: